Home Economy IC places CareHealth Plus under receivership due to liquidity problems

IC places CareHealth Plus under receivership due to liquidity problems

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THE INSURANCE Commission (IC) has placed health maintenance organization (HMO) CareHealth Plus Systems International, Inc. under receivership due to its inability to pay its obligations amid liquidity issues.

CareHealth Plus has been placed under receivership effective June 27, the IC said in a notice posted on its website.

“Based on the evaluation of the company’s liquidity and solvency by Atty. Erwin C. Onglengco, CareHealth Plus is suffering from liquidity problems, which resulted to continuous delay and difficulty of paying all its obligations,” the insurance regulator said in the latest notice.

The IC also issued a stay order against CareHealth Plus effective June 27 “in order to consolidate, preserve, and protect the assets of the company for the benefit of its members and other stakeholders,” based on a notice dated June 21.

“Hence, payment of claims is suspended until Carehealth is restored to a state wherein it is liquid and has sufficient assets, properties and/or means to satisfy the claims of its members and other stakeholders; or until it goes into liquidation, as the case may be,” the regulator said.

This comes about three months after the HMO was placed under conservatorship on April 5 due to complaints that it was unable to provide the benefits stipulated in its products. The IC found a total of 66 pending complaints against CareHealth Plus, with some involving corporate accounts and government agencies.

The IC issued a cease-and-desist order on the company on Oct. 10, 2023, preventing it from selling new policies. However, it was allowed to continue servicing the claims of existing policyholders.

In a resolution dated April 3, the IC denied CareHealth Plus’ motion to lift the cease-and-desist order. It also denied the HMO’s application for license renewal.

CareHealth Plus is an HMO based in Manila with several branches in the country.

The firm booked a net profit of P1.23 million as of September 2023, data from the IC showed. Its assets stood at P1.47 billion in the period, while liabilities totaled P1.4 billion.

The HMO industry posted a net income of P6.8 million in the first quarter, a turnaround from the P319-million net loss incurred in the same period last year, on the back of higher revenues. — AMCS

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